Southeastern Consumer Energy Group Urges Interior Dept. to Make Commonsense Investments into American Energy Highlights Need to Ensure Offshore Production is Done Safely, Responsibly

Fredericksburg, Va. – May 4, 2010 The non-partisan Southeast Energy Alliance (SEA) sent a letter yesterday to Renee Orr – chief of the Minerals Management Service’s (MMS) leasing division at the U.S. Interior Department – expressing support for the completion of a 5-year Outer Continental Shelf (OCS) leasing plan, as well as the inclusion of Lease Sale 220, a tract along Virginia’s coast.

In the letter, SEA executive director Michael Whatley writes, “Today, more than ever, the families, farms, factories and businesses of the Southeast are vulnerable to the volatility of energy prices and our nation’s increasing reliance on imported oil. The federal government must do more to formulate a comprehensive national energy policy that will effectively address the concerns that all Americans share regarding our energy security and expanded access to the vital energy reserves contained in the OCS must be a fundamental part of America’s energy future.”

SEA also acknowledges the severity of the incident in the Gulf of Mexico and its implications on national energy policy moving forward, noting, “We believe that it is imperative for industry and MMS to find out what caused the explosion and take every possible step to ensure that something similar does not happen again. We also believe that the threat of such an event must be carefully weighed against the need to ensure domestic energy security, maintain U.S. competitiveness and jobs and expand our domestic resources.”

The full text of the letter is copied below.

May 3, 2010

Renee Orr, Five Year Program Manager
Department of the Interior
Attention: Leasing Division (LD)
381 Elden Street, MS-4010
Herndon, Virginia 20170-4817

RE:  Remand of the 2007-2012 OCS Oil and Gas Leasing Program

Dear Ms Orr:
The Southeast Energy Alliance strongly supports increased access to oil and natural gas resources and the Minerals Management Service’s intention to finalize a Proposed Revised Outer Continental Shelf (OCS) Leasing Program from 2007-2012 and the decision to include Lease Sale 220 scheduled for 2011 in that Program.

Today, more than ever, the families, farms, factories and businesses of the Southeast are vulnerable to the volatility of energy prices and our nation’s increasing reliance on imported oil. The federal government must do more to formulate a comprehensive national energy policy that will effectively address the concerns that all Americans share regarding our energy security and expanded access to the vital energy reserves contained in the OCS must be a fundamental part of America’s energy future.

As we have said repeatedly in comments to MMS regarding leasing in the Mid-Atlantic Region, the Southeast Energy Alliance also believes that leasing should not take place without considering the associated environmental and public risks and that the U.S. Minerals Management Service (MMS) should take all necessary steps to ensure that environmental safeguards are met and properly balanced.  In preparing the necessary Environmental Impact Statement (EIS) for Lease Sale 220, the MMS should specifically address all areas of concern regarding oil and natural gas development, such as impacts on wildlife and potential conflicts from seismic surveys and fishing.

While SEA applauds the decision of MMS to move forward with leasing in the Gulf of Mexico and Mid-Atlantic regions, we are concerned about the decision to cancel scheduled lease sales in the Chukchi Sea, Beaufort Sea and North Aleutian Basin in Alaska. The inclusion of these areas for leasing in the 2007-2012 Five Year Plan was reached following years worth of studies and public input. MMS has spent more than $300 million dollars on studies in Alaska and in the past decade MMS has funded well over 250 studies in Alaska with the majority of these focused on addressing information needs in the Beaufort and Chukchi Seas. Delaying sales in these areas for the purpose of additional studies is unnecessary. Further, the decision to prohibit leasing in the North Aleutian Basin until 2017 is not warranted based on the record compiled by MMS when the original 2007-2012 Five Year Program was developed.

Lastly, Southeast Energy Alliance recognizes the costs – both human and environmental – of incidents such as the explosion and sinking of the Deepwater Horizon rig in the Gulf of Mexico in April. We believe that it is imperative for industry and MMS to find out what caused the explosion and take every possible step to ensure that something similar does not happen again. We also believe that the threat of such an event must be carefully weighed against the need to ensure domestic energy security, maintain U.S. competitiveness and jobs and expand our domestic resources.  Offshore development serves our nation’s best interests by improving energy security, diversifying supply, increasing economic development, and generating important local, state and federal revenue.

Because all American families, farms, factories and businesses are affected by skyrocketing energy prices, the Southeast Energy Alliance believes that moving forward with the Revised 2007-2012 Oil and Gas Leasing Plan – including Lease Sale 220 in Virginia – will play a critical role in creating a robust national energy policy and securing our energy future.

Sincerely,
Michael Whatley
Executive Director
Southeast Energy Alliance

The Southeast Energy Alliance is a non-partisan organization of businesses, trade associations and non-profit organizations –  including Farm Bureaus, Electric Cooperative Associations, Chambers of Commerce and Manufacturing Associations – across the Southeastern United States that understand the importance of the development of sound energy policies to ensure the economic viability of their organization. Utilizing grassroots, grass-tops, public advocacy and education at both the state and federal levels, SEA is dedicated to projects and activities that will ensure access to affordable and reliable energy for families, farms and businesses across the Southeast. SEA is the Southeastern regional affiliate of the Consumer Energy Alliance.